Debts Over £15,000
What if you have equity in your property? |
| Do not be discouraged from calling if you do have equity in your property. The risk of losing ones home is a constant worry and can usually be avoided. Our network of professionals will negotiate a commercially viable alternative to keep you in control of your property. |
|
Recent Example - People with Equity in their Properties |
| Mr and Mrs Slade, a young married couple who worked as estate agents had a joint household income of £36,500. They both enjoyed all of the benefits of a good income. In 1996 they purchased a property in a newly built suburban development in London. Their joint income easily covered mortgage and living expenses. Over the course of the next few years both incurred personal loans and credit card liabilities, which had grown to £32,000. As time passed both found it difficult to meet the minimum payments of £1200 per month. The interest steadily mounted up and the annoying letters and telephone calls from creditors began. |
| The couple were under the threat of bankruptcy, which would have been a disaster considering their property had £15,000 worth of equity in it. (£100,000, present market value less £85,000 outstanding mortgage.) This would have meant that if one of the creditors were to petition for their bankruptcy the house would have been sold to pay back debts. |
| We advised the couple enter into a tailor made three year IVA (Individual Voluntary Arrangement) offering 80 pence in the pound. This offer was based on what the couple could comfortably afford and was accepted. |
The advantages to the couple were as follows: |
- They reduced their total debt
- All interest charges were stopped
- Their monthly payments were reduced by £900.00
- They were able to keep their house
|
| The return for creditors in an arrangement such as this is far more beneficial than would be achieved in a bankruptcy procedure |
